Regions Financial Corp, a large Southeast regional bank, on Wednesday said it has received information requests from the Securities and Exchange Commission regarding some Morgan Keegan mutual funds whose values plummeted as the credit crisis intensified.
The Birmingham, Alabama-based company said it faces some lawsuits seeking class-action status on behalf of investors who claim they were misled or not told about the funds’ risks. It said the SEC requests concern matters addressed in the litigation.
Last year, two Morgan Keegan Select bond mutual funds fell more than 50 percent because of exposure to complex or risky debt, according to Morningstar Inc data. It is rare for bond mutual funds to suffer annual losses of that magnitude.
Regions took a $38.5 million fourth-quarter charge related to the asset management unit. It disclosed the information requests in its annual report filed with the SEC.
(Reporting by Jonathan Stempel; Editing by John Wallace)
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